Vornado Realty Trust (VNO): Business Model Canvas [Dec-2025 Updated]

You're looking past the stock ticker to see exactly how Vornado Realty Trust actually makes its money, especially with that massive PENN District overhaul underway. Honestly, their engine runs on irreplaceable Manhattan real estate, turning prime office space-where Q3 2025 rental revenue hit about $389.1 million-and high-street retail into long-term, sticky income streams, often anchored by giants like NYU. It's a high-stakes game of location and long-term lease commitment. We've mapped out their entire nine-block strategy, from their $2.5 billion capital spend to their unique 100% LEED-certified value proposition, so dig in below to see the full blueprint.

Vornado Realty Trust (VNO) - Canvas Business Model: Key Partnerships

You're looking at how Vornado Realty Trust (VNO) builds value through its critical external relationships. These aren't just vendor agreements; they are foundational to executing its New York-centric strategy.

Joint ventures with institutional investors for major assets like 555 California Street

Vornado Realty Trust maintains equity stakes in premier assets outside its core New York focus, often through joint ventures. For the 555 California Street office campus in San Francisco's Financial District, Vornado holds a significant ownership share, though the firm has signaled openness to selling this asset to complete its New York pivot. The campus aggregates 1.8 million square feet across three buildings, including the 52-story tower. Vornado owns a 70% controlling interest in the partnership, with The Trump Organization holding the remaining 30%. This asset generated $17 million in net operating income (NOI) in the second quarter of 2025. Back in 2021, Vornado completed a $1.2 billion refinancing on the property, where Vornado's share of the net proceeds was approximately $454 million.

Strategic alliances with anchor tenants like NYU for the 70-year master lease at 770 Broadway

The master lease agreement with New York University (NYU) at 770 Broadway is a prime example of a deep, long-term strategic alliance that immediately bolstered Vornado Realty Trust's balance sheet. This deal, which closed on May 5, 2025, involves 1,076,000 square feet of office space on a triple net basis for a 70-year term. To secure this, NYU made a prepaid lease payment to Vornado of $935 million. Vornado is set to receive annual lease payments from NYU of approximately $9.3 million over the lease term. Vornado used a portion of the prepaid amount to repay the $700 million mortgage tied to the property. Vornado retains the 92,000 square feet retail condominium space at the property, which is leased to Wegmans.

• Lease Term: 70 years
• Prepaid Lease Payment Received: $935 million
• Annual Lease Payment: Approx. $9.3 million
• Office Space Leased to NYU: 1,076,000 SF
• Retail Space Retained by Vornado: 92,000 SF

Collaboration with the U.S. Green Building Council for 100% LEED portfolio certification

Vornado Realty Trust established a significant partnership with the U.S. Green Building Council (USGBC) to formalize its sustainability commitment. This collaboration resulted in Vornado becoming the first major U.S. real estate owner to achieve 100% LEED certification across its entire in-service portfolio. This milestone covers 26.1 million square feet of space. Specifically, 24.8 million square feet spread across 25 buildings achieved the highest ratings of LEED Platinum or Gold. The redevelopment of THE PENN DISTRICT, a 10-million-square-foot campus, also earned the world's first ModeScore Platinum rating for sustainability and connectivity in 2024.

Partnerships with third-party brokers and property management firms for leasing and operations

While Vornado Realty Trust emphasizes its strength in the in-house integration of the full complement of real estate skills for operational excellence, it still relies on external partners for market reach. The company uses third-party brokers to facilitate leasing activities across its Manhattan office and high street retail portfolio. Vornado's strategy centers on maintaining control and operational oversight, but market access requires these external relationships to drive leasing velocity.

Government/transit entities for the PENN District overhaul (e.g., Amtrak, MTA)

The transformation of THE PENN DISTRICT is heavily reliant on public-private partnerships, particularly with transit authorities. Vornado Realty Trust's renovation of New York Penn Station, the busiest U.S. rail hub, is considered one of the most significant urban infrastructure projects. This involved a public-private partnership with Amtrak to complete the 7th Avenue and 32nd Street Entrance project, which expanded the entrance width by 50 percent. The overall Penn Station redevelopment project is valued at $7 billion. Amtrak itself has invested more than $300 million in capital improvements at New York Penn Station over the five years leading up to 2024. The Metropolitan Transportation Authority (MTA) has stated that Vornado's private funding for the development around the transit hub is 'critically important' to the plan, even as federal funding sources are explored.

Finance: draft 13-week cash view by Friday

Vornado Realty Trust (VNO) - Canvas Business Model: Key Activities

You're managing a portfolio concentrated in the nation's most vital city, so your key activities center on intensive, high-value asset transformation and leasing execution in Manhattan. Here's a look at what Vornado Realty Trust is actively doing as of late 2025, grounded in the latest figures.

Redeveloping and leasing the PENN District campus is a core focus, turning older assets into modern destinations. Vornado Realty Trust has invested heavily here, with PENN 2, the cornerstone, recently reskinned with a new curtain wall and featuring distinctive corner loggias on every floor. The activity is paying off; Vornado Realty Trust expects PENN 2 occupancy to hit or exceed its year-end guidance of 80%, having already leased over 1.3 million square feet since the project started, with Q3 leases there averaging $112 per square foot. PENN 1, which includes the WorkLife amenity ecosystem across its first three levels, has seen 1.6 million square feet leased since its redevelopment began, at average starting rents of $94 per square foot. The combined PENN 1 and PENN 2 represent more than 4.2 million square feet of space. Furthermore, Vornado Realty Trust is planning a strategic shift by developing a $350 million, 475-unit rental tower in the PENN District, hoping to use the state's 485x program for tax incentives.

Active management of a New York office portfolio means driving occupancy in a tight market. Vornado Realty Trust is one of New York City's leading landlords, holding ownership and/or management interest in nearly 20 million square feet of office space, primarily in Midtown Manhattan. This management focus resulted in Manhattan office occupancy climbing to 88.4% in the third quarter of 2025, up from 86.7% in the second quarter. In total for Q3 2025, Vornado Realty Trust leased 594,000 square feet of office space in New York City. Across the first nine months of 2025, the total leasing volume reached 3.7 million square feet overall, with 2.8 million square feet of that being Manhattan office space.

Strategic capital allocation involves both monetization and targeted acquisition. Vornado Realty Trust completed the $350 million sale of its share of the UNIQLO flagship store portion at 666 Fifth Avenue in January 2025, realizing net proceeds of $342 million, which were used to partially redeem $390 million of preferred equity on the asset. Also in 2025, the company completed the sale of the 173,000 square foot 512 West 22nd Street office building for $205 million in Q3, resulting in Vornado Realty Trust's share of net proceeds being approximately $38 million after repaying the $123 million mortgage loan. On the investment side, Vornado Realty Trust completed the acquisition of 623 Fifth Avenue in September 2025, with plans for a redevelopment targeting a 9% yield on cost. Separately, PENN 11, a 1.2 million square foot office building, was refinanced for $450 million.

Securing high-value, long-term leases is the direct measure of leasing success. For Vornado Realty Trust's Q3 2025 office leases in New York, the initial average rent was $102.60 per square foot, aligning with the reported average of $103 per square foot. These Q3 deals carried a long-dated weighted average lease term of 12.5 years and saw mark-to-markets expand by 15.7% on a GAAP basis and 10.4% on a cash basis. Excluding the 1.1 million square foot master lease with NYU at 770 Broadway, the remaining 1.7 million square feet leased in the first nine months achieved average starting rents of $99 per square foot.

Maintaining and enhancing sustainability standards is integrated across the portfolio, with a guiding goal of achieving carbon neutrality by 2030. Vornado Realty Trust has set a corporate goal to reduce 50% of landlord-controlled energy by 2030, using a 2009 base year. The company has already reached a significant milestone by achieving 100% LEED certification across its portfolio. To support tenant-side reductions, Vornado Realty Trust submeters approximately 95% of its tenant spaces. For waste management, a goal is set to divert 75% of commercial waste from landfills by 2030, with an interim goal to introduce organics recycling to 85% of the portfolio by 2025.

Here's a quick look at key operational metrics from Q3 2025 leasing:

The firm's operational focus also includes specific capital projects and tenant engagement:

• Planned investment of $350 million for a new 475-unit rental tower in the PENN District.
• Leasing activity in the PENN District during Q2 2025 totaled 190,000 square feet.
• Vornado Realty Trust currently operates almost 2,000 apartment units throughout New York City.
• The company hosts tenant roundtables twice a year to discuss sustainability initiatives.
• Mandatory Sustainability Training is required for all building operators and managers.

Vornado Realty Trust (VNO) - Canvas Business Model: Key Resources

You're looking at the core assets that power Vornado Realty Trust's operations as of late 2025. These are the tangible and intangible things the company owns or controls that are essential to its value proposition.

Irreplaceable, trophy real estate assets in Manhattan, including the PENN District form the bedrock of Vornado Realty Trust's portfolio. The company is one of New York City's leading landlords, concentrating its office holdings primarily in Midtown Manhattan. The PENN DISTRICT campus itself encompasses over 10 million square feet, including PENN 1 and PENN 2 atop Madison Square Garden and Penn Station. As of the third quarter of 2025, the total New York office occupancy stood at 87.5%, with PENN 2 reaching 78% occupancy in Q3 2025, on track to hit the year-end guidance of 80% or above.

Vornado Realty Trust also holds iconic, non-NYC assets, though management has signaled openness to selling these for the right price to focus more heavily on New York. These include THE MART in Chicago and 555 California Street in San Francisco. Here's a quick look at the scale of these signature properties:

The company maintains a strong liquidity position, which provides flexibility for operations and investment. Vornado Realty Trust exited the third quarter of 2025 with approximately $1.01 billion in cash and cash equivalents. Furthermore, immediate liquidity was reported around $2.6 billion at that time.

A key competitive differentiator is the company's commitment to sustainability, evidenced by its 100% LEED-certified in-service portfolio. Vornado Realty Trust was the first major real estate owner, operator, and developer in the nation to achieve this milestone across its entire 26.1 million-square-foot in-service portfolio. Specifically, 24.8 million square feet across 25 buildings achieved the highest LEED Platinum or Gold ratings.

The operational capacity is supported by a fully integrated, in-house development and leasing team. This team handles significant leasing activity, such as executing 594,000 square feet of New York office deals in Q3 2025 at starting rents of $103 per square foot. The team is also driving repositioning projects, like the 623 Fifth Avenue acquisition, which is planned for redevelopment to be completed by 2027.

The core intangible resources include the following operational metrics:

• New York office leasing mark-to-markets for Q3 2025 were plus 15.7% GAAP and plus 10.4% cash.
• The average lease term signed in Q3 2025 was more than 12 years.
• Overall Manhattan office occupancy reached 88.4% in Q3 2025.
• The company expects 2025 comparable Funds From Operations (FFO) to be "slightly higher" year-over-year.

Vornado Realty Trust (VNO) - Canvas Business Model: Value Propositions

You're looking at the core reasons why tenants choose Vornado Realty Trust's properties, especially as they finalize major redevelopment projects in late 2025. It's about location, quality, and long-term security. Here's the breakdown of what Vornado Realty Trust offers its customers.

Premier Location: Office space at the nexus of major transit hubs, especially the PENN District

The primary value proposition centers on unparalleled access, particularly within Manhattan's PENN District. This area is positioned as the city's new West Side gateway, anchored by the Moynihan Train Hall.

Vornado Realty Trust controls approximately 10 million square feet of property in the PENN District, which is being actively transformed. The transit connectivity is unmatched:

• Access to 15 subway lines.
• Access to Long Island Railroad, New Jersey Transit, PATH, and Amtrak convergence.
• The PENN 2 tower, a centerpiece of the redevelopment, is situated directly above Penn Station.

The commitment to this area is substantial, with Vornado Realty Trust having sunk $1.2 billion into revamping Penn 1 and Penn 2 as of 2025. Furthermore, an arbitration panel determined the annual ground rent payable for the PENN 1 land parcel will be $15,000,000 for the 25-year period beginning June 17, 2023.

Modernized Assets: Class A+ office environments

Vornado Realty Trust is delivering modern, highly efficient spaces. While the prompt suggests a specific capital improvement figure, the reported investment figures focus on the PENN District transformation. For example, the PENN 2 project has seen significant capital deployment.

Here's a look at the investment and leasing status for the PENN 2 asset, a key part of the modernization effort:

The transformation of PENN 2 includes a modern curtain wall, a triple-height lobby, and 72,000 square feet of outdoor green spaces. Leasing activity in the first nine months of 2025 at PENN 2 reached an average starting rent of $112 per square foot for 325,000 square feet leased in Q3 alone.

Sustainability: Providing tenants with a 100% LEED-certified, energy-efficient building platform

Vornado Realty Trust has established a significant environmental value proposition by achieving a major industry milestone. They are the first major U.S. real estate owner to certify their entire in-service portfolio.

The scale of this commitment is clear:

• 100% LEED certification across the entire in-service portfolio.
• Total in-service portfolio size is 26.1 million square feet.
• 24.8 million square feet across 25 buildings are certified at the highest levels: LEED Platinum or Gold.

The redevelopment of THE PENN DISTRICT, a 10-million-square-foot campus, further underscores this, earning the world's first ModeScore Platinum rating for sustainability and connectivity in 2024. This platform helps tenants with energy-efficient operations.

High-Street Retail: Flagship retail locations in high-foot-traffic corridors (e.g., Fifth Avenue)

The retail component offers tenants prime visibility in Manhattan's most sought-after corridors. Vornado Realty Trust's Manhattan portfolio includes significant street-level square footage.

The retail footprint and key transactions include:

This retail presence adds crucial foot traffic and mixed-use dynamism to their office assets.

Scale and Stability: Long-term leases with credit-rated tenants like Verizon and NYU

Stability comes from the sheer scale of the portfolio and the duration of commitments from high-quality tenants. Vornado Realty Trust controls 20.1 million square feet of office space in Manhattan across 30 properties.

Two recent, significant long-term leases demonstrate this stability:

• NYU Master Lease: 1,076,000 square feet at 770 Broadway on a 70-year term.
• NYU Financials: Prepaid lease payment of $935,000,000, with annual payments near $9.3 million (specifically $9,281,000).
• Verizon Lease: A 19-year lease for 203,000 SF (nearly 200,000 square feet) in PENN 2 for its New York Headquarters.

These long-duration, triple net arrangements provide a highly reliable income stream, which is key for Vornado Realty Trust's financial footing.

Vornado Realty Trust (VNO) - Canvas Business Model: Customer Relationships

Vornado Realty Trust (VNO) manages relationships with a focus on high-value, long-term occupants in its Manhattan-centric portfolio.

High-touch, direct relationship management with large corporate and institutional tenants

Vornado Realty Trust engages directly with major tenants, including institutional names like New York University (NYU) and major retail operators such as Wegmans, which occupies the 92,000 square feet retail condominium at 770 Broadway. The relationship management is underscored by the scale of transactions, such as the May 5, 2025, completion of the master lease with NYU for 1,076,000 square feet at 770 Broadway.

Custom-tailored build-outs and tenant improvement allowances for Class A office space

The investment in tailoring space is quantified through Tenant Improvements and Leasing Commissions (TI/LC) metrics. For the third quarter of 2025, the TI/LC per square foot was reported at $163.37, equating to $13.07 per square foot per annum. Compare this to the second quarter of 2025, where the total TI/LC per square foot was $89.15, with a per annum rate of $13.11. For the first quarter of 2025, the TI/LC as a percentage of initial rent was as high as 29.7% for some deals, while other periods showed figures like 7.7%.

Here's a quick look at the reported TI/LC data:

Long-term, sticky lease structures, exemplified by the 70-year NYU master lease

The 70-year master lease with NYU at 770 Broadway exemplifies long-term commitment. This transaction, completed on May 5, 2025, involved a prepaid lease payment from NYU of $935 million and annual lease payments of approximately $9.3 million (specifically $9,281,000 as reported for Q3 2025). Vornado Realty Trust used a portion of the prepayment to clear the property's $700 million mortgage loan. The lease term is 70 years, with NYU holding purchase options in 2055 and 2095. The office occupancy for New York City stepped up to 88.4% in Q3 2025 following this lease, up from 86.7% in Q2 2025. Outside of the NYU deal, leasing in the first nine months of 2025 covered 1.7 million square feet at average starting rents of $99 per square foot.

Lease duration in other Manhattan office deals executed in Q3 2025 averaged more than 12 years.

Dedicated property management for operational excellence and tenant retention

Operational excellence is measured by leasing velocity and occupancy targets. For the PENN 2 asset, occupancy reached 78% in Q3 2025, with management expecting it to be at or above 80% by year-end 2025. Since project inception, over 1.3 million square feet have been leased at PENN 2, with a projected incremental cash yield of 10.2% at year-end. In the third quarter of 2025 alone, Vornado Realty Trust executed 21 New York office deals totaling 594,000 square feet.

Key leasing metrics for Q3 2025 office deals:

• Starting Rents: $103 per square foot
• GAAP Mark-to-Markets: plus 15.7%
• Cash Mark-to-Markets: plus 10.4%

Investor relations focused on transparent communication of asset value and development pipeline

Vornado Realty Trust communicates its financial health and strategic pipeline through regular filings and calls. Immediate liquidity stood at ~$2.6 billion as of Q3 2025. The Net Debt/EBITDAre (as adjusted) improved to 7.3x. Net proceeds year-to-date from sales, financings, and the NYU deal totaled $1.5 billion, which included a $900 million debt paydown and a $500 million cash build. The company expects 2025 comparable FFO to be slightly higher than 2024, with 2026 anticipated to be flattish, and 2027 flagged as an earnings inflection year. The development pipeline includes the acquisition of 623 Fifth Avenue for $218 million, targeting a 9-10% yield on cost by 2027.

Vornado Realty Trust (VNO) - Canvas Business Model: Channels

You're looking at how Vornado Realty Trust moves its product-prime Manhattan office and retail space-to the customer, which is all about direct engagement and leveraging key industry relationships. Here's the quick math on their channel performance as of late 2025, based on Q3 results.

In-house leasing and marketing teams focused on direct tenant engagement

Vornado Realty Trust's in-house teams are driving significant volume, especially in Manhattan's office sector, which the CEO called the strongest in the country. The leasing momentum is clearly visible in the first nine months of 2025.

• Leased 3.7 million square feet overall in the first nine months of 2025.
• Leased 2.8 million square feet of that total within Manhattan offices.
• Achieved the highest average starting rents in the city at $103 per square foot for Q3 2025 office deals.
• The average lease term for Q3 New York office deals was over 12 years.

Global commercial real estate brokerage networks (e.g., CBRE, JLL) for tenant sourcing

While Vornado Realty Trust emphasizes direct engagement, external brokerage networks are still critical for deal flow and market reach. JLL, for example, advised partners on a recent commercial transaction in the city, showing the network's active role in the broader ecosystem.

The effectiveness of these channels is reflected in the rising occupancy rates across the core portfolio.

• Total New York portfolio occupancy reached 87.5% at the end of Q3 2025.
• Manhattan office occupancy rose sequentially to 88.4% in Q3 2025.
• Vornado Realty Trust expects overall NYC occupancy to reach the low-90s over the next year.
• PENN 2 occupancy stood at 78%, on track to exceed the year-end guidance of 80%.

Corporate website and digital platforms for property showcasing and investor communication

Vornado Realty Trust maintains a dedicated digital channel for investors and prospective tenants to access detailed information about its assets and strategy. You can find key materials on their site.

The official corporate website is www.vno.com, specifically within the Investor Relations section.

• Documents available for download include the Manhattan Portfolio Book.
• Renderings and construction images are provided for THE NEW PENN DISTRICT.
• The company posted its Sustainability 2024 Report and a Technology & Innovation Presentation.

Direct sales of high-end residential units (e.g., 220 Central Park South)

The direct sales channel for Vornado Realty Trust's luxury residential component at 220 Central Park South continues to generate high-value transactions, acting as a significant, albeit non-recurring, revenue stream.

On-site property management offices for day-to-day tenant service

On-site management offices are the primary interface for service delivery, which directly impacts tenant retention and the success of leasing efforts. The high mark-to-market rates on new leases suggest tenants are willing to pay a premium for the quality of space and service delivery.

The acquisition of 623 Fifth Avenue is a channel enhancement play, as the plan is to reposition the currently vacant space into a premier asset.

• Acquired 623 Fifth Avenue for $218 million in September 2025.
• Targeted yield on cost for the repositioned asset is ~9-10% by 2027.
• The building was acquired at 75% vacancy, representing future leasing channel inventory.
• The New York retail portfolio leased 27,000 square feet in Q3 2025 at an initial rent of $292.79 per square foot.

Vornado Realty Trust (VNO) - Canvas Business Model: Customer Segments

Corporate Office Tenants in Prime Manhattan Locations

Vornado Realty Trust focuses on securing long-term leases with high-credit tenants in its nearly 20 million square feet of Manhattan office assets.

The leasing activity in the third quarter of fiscal 2025 saw VNO lease 594,000 square feet of Manhattan office space. The occupancy rate for the overall portfolio as of September 30, 2025, stood at 80.7%, with the New York office segment at 87.5%.

Institutional and Educational Occupants

Long-term occupancy agreements with major institutions are a key segment for Vornado Realty Trust, providing stable cash flows.

• New York University (NYU): Completed a master lease for 1,076,000 square feet at 770 Broadway.
• NYU Lease Term: 70 years.
• NYU Prepaid Rent Component (Q1 2025): $935,000,000.
• Gain on Sales-Type Lease (NYU): $803,248,000 recorded for the nine months ended September 30, 2025.

Luxury and Flagship High-Street Retail Brands

Vornado Realty Trust operates as the largest owner and manager of street retail in Manhattan, concentrating on high-foot-traffic corridors.

Key retail districts include Fifth Avenue, Madison Avenue, Times Square, and Herald Square/34th Street.

Design and Trade Show Exhibitors at THE MART, Chicago

THE MART in Chicago is a significant asset, serving as a major center for design and housing large corporate tenants.

• Total Building Square Footage (SF): 3,700,000 SF
• Occupancy (Q2 2025): 78%
• Net Operating Income (NOI) (Q2 2025): $25 million
• NOI (Year Prior Q2): $16 million
• Design Showrooms: More than 250 premier design showrooms
• Daily Visitors: Average of 30,000 people each business day

Notable tenants include Motorola Mobility, Conagra Brands, and Medline Industries, which tripled its footprint on the 12th floor. Geico leased nearly 19,000 square feet.

High-Net-Worth Individuals (Luxury Residential)

Vornado Realty Trust's operating portfolio includes residential units in New York City.

• New York City Residential Units: More than 2000 units

The company also executed a high-value transaction relevant to high-end real estate, acquiring the 623 Fifth Avenue office condominium for $218,000,000.

Vornado Realty Trust (VNO) - Canvas Business Model: Cost Structure

The Cost Structure for Vornado Realty Trust is heavily weighted toward financing costs, ongoing property management, and significant, long-term capital commitments tied to its core New York City assets. You're looking at a structure dominated by fixed and semi-fixed obligations inherent to owning and developing large-scale, high-value real estate.

Financing and Debt Service

Interest and debt expense is a primary, non-negotiable cost. For the first quarter of 2025, Vornado Realty Trust reported a significant interest expense of $95.816 million for the three months ended March 31, 2025. This reflects the substantial leverage required to maintain and grow a portfolio of this magnitude, especially as older, lower-rate loans mature into the current rate environment.

Capital Expenditures for Development

High capital expenditures (CapEx) are necessary to execute Vornado Realty Trust's vision, particularly in the PENN District. While the overall, long-term commitment for the transformation of the PENN District has been stated around $2.4 billion to $2.5 billion, more immediate, project-specific costs are also substantial. For instance, the planned rental tower in the PENN District is eyed to cost roughly $350 million. These development costs are lumpy but represent a major drain on capital resources when active.

Property Operating Expenses

Day-to-day running of the properties generates substantial, recurring costs. For the third quarter ending September 30, 2025, Vornado Realty Trust reported Property Operating Expenses of $396.38 million. This figure covers everything from utilities and maintenance to property taxes and insurance across the entire portfolio.

Ground Rent Obligations and Litigation Exposure

Leasehold arrangements create unique, long-term cost commitments. For the PENN 1 land parcel, an arbitration panel determined the annual ground rent for the 25-year term beginning June 17, 2023, to be $15 million. This determination allowed Vornado Realty Trust to reverse approximately $17.2 million of previously accrued rent expense in Q1 2025. However, litigation is pending; if the fee owner prevails in the final judgment, the annual rent obligation would increase to $20.22 million, representing a potential annual cost difference of $5.22 million.

Here's a look at the key quantifiable costs identified for the 2025 period:

General and Administrative (G&A) Costs

Maintaining the fully integrated management platform requires consistent G&A spending to support leasing, property management, and corporate functions. While a specific 2025 G&A figure isn't immediately available, the scale of the operation is suggested by the 2024 Net Operating Income (before depreciation, G&A, and interest) which stood at $1,099.8 million. This indicates that the overhead supporting the portfolio, including G&A, is a significant, ongoing operational cost base.

• The integrated platform supports 10 million square feet of commercial property in the PENN District alone.
• Leasing activity in Q1 2025 involved leasing 1.04 million square feet across the portfolio.
• The company employed approximately 2.94K people as of the September 2025 quarter-end.

Vornado Realty Trust (VNO) - Canvas Business Model: Revenue Streams

You're looking at the core ways Vornado Realty Trust brings in cash as of late 2025. The business model leans heavily on its Manhattan office and premier retail holdings, but non-recurring events like major lease transactions are providing significant, albeit lumpy, boosts to the top line.

The primary engine remains property leasing, though the specific Q3 2025 rental figure you mentioned is slightly lower than the reported total revenue, suggesting other items are included in the overall top line. For the third quarter ended September 30, 2025, Vornado Realty Trust reported total revenues of $453.7 million, a 2.4% increase year-over-year.

Here's a breakdown of the key revenue components:

• The core rental income from office and retail properties for Q3 2025 was approximately $389.1 million.
• Signage and advertising revenue from high-profile Times Square assets is a high-margin stream, with management projecting 2025 signage revenue to be the highest year ever.
• Management and leasing fees and other income streams, such as the consensus estimate for 'other revenues' in Q3 being $81.8 million.

Major, non-recurring financial events significantly impact the reported income, especially when looking at year-to-date figures. The most notable was the master lease with New York University (NYU) for 770 Broadway:

Vornado Realty Trust completed the 70-year master lease with NYU in Q1 2025, which included a substantial $935 million prepaid lease payment. This transaction also established a steady, long-term income stream of approximately $9.3 million annually for the lease term. For the nine months ended September 30, 2025, the accounting gain related to this NYU master lease was reported as $803,248,000.

Strategic asset sales also contribute to cash flow and gains:

The sale of a portion of the U.S. flagship store at 666 Fifth Avenue to UNIQLO closed, generating $350 million in transaction value, with net proceeds of $342 million. This disposition resulted in a recognized net gain of $76,162,000 for the nine months ended September 30, 2025. Additionally, in Q3 2025, Vornado sold 512 West 22nd Street for $205 million.

You can see the impact of these large items on the nine-month results:

The company is actively managing its portfolio to optimize these revenue sources, for example, by planning retail redevelopment on 34th and Seventh, which involves taking some signage revenue offline temporarily next year to rebuild signs for greater future returns.

Finance: draft 13-week cash view by Friday.